The Local Government Association of Queensland (LGAQ) has criticised the Newman Government after it moved to continue the practice of Councils funding the gap between what developers are required to pay towards new urban infrastructure and the real costs.
LGAQ President Margaret de Wit said that while the Newman Government had opted not to cut the maximum infrastructure charge that councils could levy on developers, it had effectively told councils their ratepayers would have to continue to foot a large part of the bill for helping developers turn a profit.
“Developer charges cover less than 70 percent of the full cost of building this infrastructure.
“The rest is paid for by council and, ultimately, the ratepayers.
“If those maximum charges are not indexed to cover rising costs, that gap will only become greater.
“We welcome the Government’s move to co-invest with councils to fund some of the infrastructure needed for new residential and commercial development.
“However, without knowing any of the detail of what is on offer, it would appear the Government has taken one step forward in assisting a handful of councils but has asked many other councils to take two steps back.’’
Councillor de Wit said that this decision denies councils the opportunity to recover from the rising cost of asset management, and that local councils are already assisting the property industry as best they currently can.
“But most councils simply cannot afford to give developers more and more of a leg up at their ratepayers’ expense.’’
She said the Government was rightly concerned about reining in the state’s debt but this decision would only force many councils to borrow more to build.
“That outcome is exactly the opposite of what the Government says it is aiming for.”
